Blue Nile Inc. (NILE) Shares Active after Upgrade at Zacks Investment Research

Blue Nile Inc. (NASDAQ: NILE) shares rose in value Thursday Dec 22 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks opened mostly flat on Thursday. The Dow Jones Industrial Average DJIA, -0.15% fell 15 points to 19,928, a drop of less than 0.1%. The S&P 500 SPX, -0.22% fell 1 point, or 0.05%, to 2,264. The Nasdaq Composite Index COMP, -0.23% fell 1 point to 5,470.21, essentially unchanged on the day.

Analysts at Zacks Investment Research upgraded shares of Blue Nile Inc. (NASDAQ: NILE) from Sell to Hold today. With a rating of Hold on the shares, Blue Nile Inc. has a 52-week high of $41.39. The one-year price target of $28.00 is a decrease compared to the opening price of $40.49, causing a fair amount of other analysts to issue statements on the stock recently. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.

Blue Nile Inc. (NASDAQ: NILE) shares last traded at $40.56, which is an increase of $0.06 or 0.15% compared to the previous closing price. Opening at $40.49, they varied from $40.45 and $40.58 throughout the day.

Blue Nile Inc. (NASDAQ: NILE) currently has a market cap of 474.43M.

Blue Nile Inc. (NASDAQ: NILE) Average Daily Trading Volume

The stock’s average daily volume is 157,733 shares out of a total float 10,956,000 and some 32,742 shares traded hands yesterday, below normal. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to pinpoint heavy volume aggregation or circulation by institutional investors.

However, just a day of significant buy side trading is not enough to determine a trend. So market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Blue Nile Inc. (NASDAQ: NILE) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By following the activity of these professional investors and how they influence moving averages, traders are able to make make well planned trades.

With that in mind, Blue Nile Inc. (NASDAQ: NILE) now has a 50-day MA of $39.79 and 200-day MA of $33.69. It has traded in a 52-week range between $22.33 – 41.39 and today’s last price is 2.01%% lower than the 52 week high of $41.39.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings at least 25% or more for the past 3 years.

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